thnx for ur help...Actually that is exavtly what i want to do....draw a transparent image with my mouse over the top of the BitMapImage. But how do i make an image transparent?? Should i make the picture box transparent somehow?? I think that would be the best approach, making the picture box look transparent, so that i can see the bitmap image behind it, and at the same time draw on the pic box n save it separately.

And the second thing is that i didnt really get how u set the image "signhere.png" to the panel in the example u reffered to. Hope u would help me. Waiting for some solution.

I tried to set the BackColor property of the picture box like below. But as i try to set the back color to Color.Transparent, it gives me an error message stating "Property value is not valid for the Control."

Sounds like image annotation to me when you want to draw on top of an image :) Anyway, you can try this to draw images on images. Hope it'll help. It's in VB.NET, so you might wanna convert to C# first.